If you are starting a business and analyzed all the aspects of it but still you should consider few of the important things and should create your own start a business checklist.
There is a difference between working for someone else and working for yourself. Among the several differences, the biggest one is that you will have something of your own, from which you can make money, pay your taxes and live your life. You can easily start a venture of your own, and then can grow it with time to reach the summit. Before starting a business, there are several things which you must consider, in order to get success in the chosen path.
- Define the purpose of your business setup
Several times, people want to start their own ventures, when they remain unsuccessful in getting a good job, but only the idea of starting a business is not sufficient; you need to start your business practically. Opening a new business shouldn’t be your option, in case you ran out of all other options, but it should be the most important decision of your life, where you want to control your working life by starting something of your own.
Only, if you are ready to take all the responsibilities seriously and looking it as a way of getting financial security, should you think about it seriously. It is a full-time work; it’s not like your hobby, which you like to do in your leisure time only. You need to define business goals and objectives for your business wisely and always have a strong execution plan too.
- Consider the type of business you are going to start
- You may think that your business idea is new and no one has ever tried it, but there is a possibility that someone had already thought about it and is working on it, which you are not aware of. It’s not important that the business idea should be new, what is important is how you are going to make it a success, what difference your business is going to create in the market and what’s the scope for your business idea.
- Make an extensive plan
- It’s important to plan out the whole idea strategically. There are millions of people, who can have similar ideas as yours, let them co-exist with you. Competition is good as it will help you in giving your best, in order to become the best, amongst others. For example, you can see several jewellery shops around you, several food outlets etc. providing similar type of products or services and still thriving. Remember that every industry is full of competitors, but those who provide a best quality service or products always remain at the top.
If your business idea is purely based on providing services, then the investment cost will be very less as compared to the investment one has to provide, while setting up a product based business, as they have to produce a tangible product and requires a lot of men, money, material and machinery, in order to do so.
- Start with a simple business plan
Since this is your very first step in the market, you require a clear business plan with you, which shouldn’t be very lengthy. All you have to do is to create a business plan of a page only, covering all the major aspects of your business, like what you are offering through it, who will be your target audience, how much you will charge them and what is your plan to achieve all these things. That’s it; nothing more or nothing less is required, once you start with these things.
You can add many more in the coming years. However, if you will try to jot down each and every point in the starting itself, you won’t be able to enter the market ever or won’t be able to setup your business.
- Identify your audience
Be very specific about your target audience, depending upon the services or products you are going to provide them. For example, if you are going to sell some particular cosmetic product, be very specific about who, you are target market is. Your product ingredients, its manufacturing process, packaging, pricing etc. will determine who will be your customers. Whether it’s a cream or a gel, it’s a moisturizer for daily use or an anti-aging cream etc. All these products cater to a specific set people in the market, specially made for specific men and women.
Thus, it’s very important to know who you are targeting. It will also help you in better advertisement and will help you to attract consumers.
- Decide the pricing amount
You are starting a new business and the price of your product or service will decide whether you will make any profit or not. While deciding the price for your service or product, you must see to it that it’s not just recovering your costs, but also generating some profit for you. Don’t undervalue your products, as it will be simply a waste of your time and efforts
Ask yourself these questions before giving out any random number as the product or service price.
- How much money do you think to generate annually?
- What is the breakdown for monthly and weekly basis?
- How many products must you sell in order to meet the numbers?
- How many clients do you need to meet the numbers?
- What is the delivery cost for that product or service to you?
Answer all this and you will get a planned estimated price for your product. After that you need to revise the number on monthly basis or quarterly basis, after seeing how well your product is doing in the market and the demand
- Manage money for your start-up venture
Having a business idea won’t help you in establishing your business; you need money for its setup. Now, the question is how you will arrange for the money! You must keep your costs down until you start making profit. For example, if you want to sell cakes, you can use a free place to bake it or hire some part-time workers for your work. Once the sales increase, you can buy a kitchen all for yourself, hire full-time workers. You can easily turn the small setup into a lavish cake shop.
In case you have some savings with you, you can use them for starting the business. However, if that can’t be possible, you need someone to finance the whole project for you. You can use your network to collect the money, lent from your friends, family members etc. If that can’t be an option too, you can borrow money from the market for a specific time period and with an interest rate, which you can return afterwards
Alternatively, you can take a loan from a bank to finance your project. All you need is money, to kick start your business, in order to earn money. So try each and every possible option, from where you can get the required money.
- Plan to attract customers
Now, everything is in line, the one thing which remains is your idea of attracting the customers. The number of customers shows, how successful your business is. Not having any customer means that everything was a waste. Thus, you must plan properly your sales, put rigorous efforts in marketing your product. Make a proper marketing plan, which will help you in attracting the people. Attracting the audience is one achievement but a major achievement is to convert them to your customers.
It doesn’t matter how many people are visiting your business place or website until and unless they are not buying anything from it. You can make a list of about 40-50 potential prospects, who you will focus first and start calling them one by one, in order to sell your products. You can even build an online network for your business and can attract the audience as most of the use internet.
- Make sure whether you are working alone as a sole trader or will be starting as a limited company; consider all its pros and cons.
- Who else is out there in the market doing the same thing, which you are planning to do and how well they are working.
- Decide who will be your target audience and concentrate on their needs and expectations only
- How will you be paid off for this, or how will you get profit in this
- Look for a proper name for you business which should be unique as well as attractive, register it
- How will you promote your business, think wisely, starting with small steps like building relationships first.
- Make your presence on the internet, have a website, it will help you in attracting more people.
- What will be your USP, so that customers will buy your products rather than their old ones.
- Where were you get the funds for your business, identify the source in advance
- Hire an accountant to manage all the cash flow and for financial advices, as you yourself can’t do each and everything.
- Now write down your business plan, which you can present in front of your investors as well as banks to borrow money.
- How will you reach your customers, how the sales will happen and how much it’s going to cost you.
- Find some potential partners for your business, which will help you in establishing your name
- Look for all the license you need to start the business and get it done so that you won’t face any legal issues in future.
- You need an account for your business, as you can’t use your personal account to do all the transactions.
- Decide when do you need to hire staff, from the very first day or later and how many people you want to hire.
- Now if you have employees, you need to insure them as per the law.
- Check whether you have the required experience and skills to execute the business plan, in case you lack something, then look for proper trainings, classes or even work for a while for better understanding of the job.
- Look for the technology which will help you in saving time, money, maintain stability and will increase your sales with better services and use that technology for your business.
- Since this is your first business, taking some advice or guidance from an experiences businessman will be of great use.
- You can start your business without quitting your job at the starting, after gaining its popularity or increase in sales you can quit your job and give full attention to your business.
Keeping these few important things in mind, you can easily setup your business. Afterwards, its success depends on your decisions and actions, which you take on daily basis and the path, you choose to reach the top position in the market.
Moreover, you can keep this in mind that out of every 5 business, nearly 3 of them vanish in the thin air after operating for about one or two years, just because they couldn’t survive the market and because they are not able to adjust as per the changes.
So,in order to survive in this fast growing business market, you need to adapt the changes as the time and technology changes, keep on expanding your business, add new ideas in it, face and conquer new challenges. You should always be ready to face your competitors, review your own strengths and weaknesses and improve them.
Include the latest sales and marketing techniques, make your product or service approachable, and improve your planning and strategizing techniques. Don’t let others influence your decisions, take their advice, but with facts and figures. Insure your business, so that if something unfortunate happens, you can still rebuild your empire. Don’t be afraid of the changes, change yourself and the business as per the advancement. Include more ideas, which can help you in the expansion of your business